AVIATION: Eagle among Chicks

In the air-freight business, crowded with
weak chicks, an eagle appeared last week. American Airlines Board
Chairman Cyrus Rowlett Smith announced that American intended to
operate "an effective nonscheduled air cargo service." Its
"effectiveness" caused shivers to 2,730 new small operators, many of
whom are veterans flying surplus planes. They now charge an average of
20¢ a ton mile. American plans to carry cargo at rates ranging from 18¢
down to the unheard-of low of 11¢ a ton mile for big shipments on long
hauls.